ADB launches $9 billion facility for vaccine access, distribution

MANILA, Philippines — The Asian Development Bank (ADB) has launched a $9-billion (about P432 billion) facility that will help developing members procure and deliver effective and safe COVID-19 vaccines.

Called the Asia Pacific Vaccine Access Facility (APVAX), the ADB said the initiative will offer rapid and equitable support to member-countries for the access and distribution of vaccines.

“As ADB’s developing members prepare to vaccinate their people as soon as possible, they need financing to procure vaccines as well as appropriate plans and knowledge to be able to safely, equitably and efficiently manage the vaccination process,” ADB president Masatsugu Asakawa said.

“APVAX will play a critical role in helping our developing members meet these challenges, overcome the pandemic and focus on economic recovery,” he added.

More than 14.3 million positive cases have been identified in Asia and the Pacific, causing more than 200,000 deaths. As the pandemic persists, economic growth in developing Asia is projected to contract by 0.4 percent in 2020 – the first regional gross domestic product contraction since the early 1960s.

The ADB emphasized that promoting safe, equitable and effective access to vaccines is a top priority of its COVID-19 response efforts.

“Vaccination programs can break the chain of virus transmission, save lives and mitigate the negative economic impacts of the pandemic by restoring confidence in people’s ability to work, travel and socialize safely,” the ADB said.

It added that the APVAX provides a comprehensive framework and resource envelope for supporting developing Asia’s vaccine access, using two complementary components, particularly the rapid response and the project investment components.

The rapid response component of the initiative will provide timely support for critical vaccine diagnostics, procurement of vaccines and transporting vaccines from the place of purchase to ADB’s developing members, while the project investment component will support investments in systems for successful distribution, delivery and administration of vaccines along with associated investments in building capacity, community outreach and surveillance.

The project investment component covers areas such as cold-chain storage and transportation, vehicles, distribution infrastructure, processing facilities and other physical investments. The component may also be used to develop or expand vaccine manufacturing capacity in developing members.

The ADB said financing for vaccines will be provided in close coordination with other development partners including the World Bank Group, World Health Organization (WHO), COVID-19 Vaccines Global Access Facility (COVAX), GAVI and bilateral and multilateral partners.

It added that APVAX promotes safe and effective vaccines to be accessed in a fair manner.

“For a vaccine to be eligible for financing, it must meet one of three criteria. It must be procured via COVAX, prequalified by WHO or authorized by a Stringent Regulatory Authority. Additional access criteria, such as a vaccination needs assessment, a vaccine allocation plan by the developing member and a mechanism for effective coordination among development partners, also help ensure that vaccine support under APVAX can be fairly and effectively implemented,” ADB said.

Meanwhile, the ADB said it is also making available a $500-million (P24 billion) Vaccine Import Facility to support the efforts of its developing members to secure safe and effective vaccines, as well as the goods that support distribution and inoculation. This is part of the bank’s Trade and Supply Chain Finance Program.

“AAA-guarantees available through the program’s vaccine import facility will mitigate payment risks and facilitate import of these goods. This will employ the same eligibility criteria on vaccines as COVAX. Co-financing with private sector partners could result in the Import Facility supporting $1 billion (P48.07 billion) in vaccine and related imports within a year,” the ADB said.

In April, ADB approved a $20-billion (P960 billion) package to support its developing members in addressing the impacts of the pandemic and streamlined some procedures to deliver quicker and more flexible assistance.

The bank has committed $14.9 billion (P715.2 billion) in loans, grants and technical assistance, including $9.9 billion (P475.2 billion) in quick-disbursing budget support from the COVID-19 Pandemic Response Option (CPRO) and support for the private sector.

In November, ADB announced $20.3 million (P974.4 million) in additional technical assistance to establish systems to enable efficient and equitable distribution of vaccines across Asia and the Pacific.

ADB said it is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.